World Trade Center Leaseholder Dealt Setback

Let A Jury Decide Insurance Issue, Appeals Court Rules

September 27, 2003|By Katia Hetter Newsday

NEW YORK — A federal court Friday rejected World Trade Center leaseholder Larry Silverstein's argument that the destruction of the twin towers constituted two separate events, dealing a blow to his fight to collect $7 billion in insurance proceeds.

Silverstein's insurers argued that the collapse of the towers was a single, coordinated event, and that one $3.5 billion payment would cover all damages caused by the attack.

The U.S. Second Circuit Court of Appeals dismissed Silverstein's request to decide the issue, leaving that question to a jury.

"The question of how many occurrences the events of September 11th constituted is a question properly left to the fact-finder," the appeals court wrote, upholding a decision by U.S. District Judge John Martin. "A jury could find two occurrences in this case or it could find that the terrorist attack, although manifested in two separate airplane crashes, was a single, continuous, planned event causing a continuum of damage."

The ruling means a jury could ultimately decide how much money is available to redevelop the World Trade Center site, where architect Daniel Libeskind's ambitious plan calls for five office towers, a transit hub, cultural center and museum, open space and a memorial site.

"We could be looking at a delay of months or years" with a jury trial, said Jeremy Soffin, spokesman for Regional Plan Association.

"Since we're on a relatively tight timeline and want to see downtown revitalized as soon as possible, I hope this would lead the parties involved to consider a settlement," Soffin added.